Moody's lifts American Axle

Moody's Investors Service said it upgraded American Axle & Manufacturing Holdings, Inc.'s corporate family rating and probability of default rating to Caa1 from Caa2. The rating on American Axle & Manufacturing, Inc.'s senior secured note was raised to B1 from B2 and the ratings on the unsecured guaranteed notes and the unsecured guaranteed convertible notes were raised to Caa2 from Caa3.

The outlook is changed to positive.

The upgrade reflects the company's improving prospect for deleveraging its financial profile as conditions improve for the North American automotive industry, Moody's said.

This improved prospect is supported by the company's favorable performance in the fourth quarter of 2009 relative to plan and the recent upward revision of its expectation for U.S. light vehicle sales in 2010 to 11.5 million units, from a previous assumption of 10 million units, the agency said.

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